Interview with the Bitbon System Creator: How Blockchain Will Change the Global Financial Market
Cryptovest had a chance to interview Simcord CEO Alexander Kud about the Bitbon System, its features and its significance.
In many respects, current trends in computerization and informatization influence changes that occur in the system of economic relations between citizens of individual states and the rest of the world.
Digital developments, which replace the traditional financial systems, hold a special place in these transformations, making their functions simpler, more transparent and convenient, while also ensuring reliable and safe information storage. Today, the main ideologist and author of the Bitbon System concept, Alexander Kud, tells us about one of these developments.
Q: Alexander, let’s go back to that period when you decided to create your own economic platform. Tell us how it was, and what was your main motivation?
A: Since 2001, I have been focused on financial studies and development of high-tech software solutions in the field of capital management. On the one hand, I observed the incredible rates of blockchain development and popularization in the financial industry since 2009 and could objectively assess the possible disadvantages of existing cryptocurrencies.
On the other hand, the blockchain industry had chosen the main vector of its development by 2015, and I studied all the important advancements in the space, making a firm decision to start developing a more advanced decentralized system that would address the many objections over the unbacked nature of digital currencies. Thus, the Bitbon System has been developed to solve issues relating to crypto assets backing and to create a modern mechanism for registering and managing property rights to assets.
Q: In your opinion, what will influence the implementation of the above-mentioned goal?
A: Firstly, for 17 years of our Company existence, we have gained tremendous experience in developing high-load software solutions related to the financial field. And secondly, it is worth mentioning our research results in the field of jurisprudence. Also, I would like to say that all developments are conducted within the framework of international law.
Thus, as of today, Simcord has two internationally registered patents, and the third one is under consideration in the United States. These patents are related to three main areas, which in the next 10 years will be intensively developed on the basis of the Blockchain technology.
Q: Please, tell us more about these patents.
A: The first patent is related to the management of property rights and the second to the transfer of digital values. The third one describes a fundamentally new type of investment and management of shares and rights in business - contributing. I would like to emphasize that this is a completely new kind of activity. It is only emerging now, in the era of the new digital economy, it will replace in the future already obsolete investment models.
Q: What is the Bitbon System today?
A: You can find a lot of information on the official Internet resources dedicated to the Bitbon System. I can go over its basic definition and explain it additionally in order to help you understand its core features and give your readers a general idea of our project.
The Bitbon System is a decentralized system based on blockchain technology. It is basically a platform for implementing contributing under the terms and conditions of Bitbon public contracts of various projects and managing legal relations between the Bitbon System users, the key component of which is Bitbon.
People should understand that the Bitbon System is a platform, not a cryptocurrency. Bitbon is an important component in this system, allowing its participants to interact. Bitbon can be transferred, exchanged for other types of assets, sold and bought on exchanges in order to participate in contributing. Alternatively, it can simply be used as an asset for storing own funds and purchasing in online stores and trading centers by means of a payment system, as well as in various areas of business activity.
Due to its backing, which we managed to achieve via the mechanisms laid down in Bitbon, our financial instrument has the feature of constant capitalization provided by the Capitalization Fund, which has a positive impact on its market liquidity and pricing.
Q: The uniqueness of the Bitbon System and the interaction principles of its components have led to the introduction of new terms — “contractat,” “contributing,” and “contributor.” What do they mean?
A: Let’s start at the beginning. Any company or individual (entrepreneur) that needs funds to implement their business project can be called a contractat. He/she initiates the creation of the Bitbon Public Contract in the Bitbon System with a detailed description of the project. The capitalization of his/her business idea is performed through the numerous partners (contributors) whose rights, including the one to receive income from the project, are guaranteed by the Bitbon Public Contract of a specific project.
Contributing is a type of activity aimed at receiving additional income by the Bitbon System users from their participation in the implementation of business projects they select independently. Contributing starts when system users exchange their Bitbons for Projectbons of any project. Accordingly, the user receives the contributor status.
Q: What does a user’s income depend on?
A: The contributor’s additional income is directly proportional to his/her share participation in a specific project. The income from contributing is entirely at the contributor’s disposal at any stage of the business project implementation.
Q: Can a Bitbon System user be a contributor to several projects simultaneously, or are there any restrictions?
A: Of course, there are no restrictions in the Bitbon System. Such a user will be considered a contributor for each project separately. I even think that many contributors will create their investment portfolios in the Bitbon System and receive constant profit, regardless of the country in which the project is being implemented and where the contributor is.
Q: What are the main principles of the Bitbon System? What processes are laid down in its functioning?
A: The functioning of the Bitbon System is built around blockchain technology. This ensures decentralized management and the security of data storage and allows each system participant to freely obtain information on the issue, transfer, splitting of nominal value, and other operations with Bitbons. Thus, the nature of blockchain excludes hacking threats, while cryptographic methods used for confidentiality and protection provide the highest possible stability.
Q: So, as far as I understand, the Bitbon System users store their Bitbons or Projectbons in electronic wallets. Am I right?
A: Basically, yes, you are. The functionality and mechanisms laid down in the Bitbon System allow its participants to use an Assetbox (so-called digital wallet) to store or transfer Bitbons and Projectbons to each other. All transactions within the system are recorded in the blockchain. This ensures security and transparent interaction of the participants, creating a high level of confidence in the Bitbon System.
Q: Alexander, tell us how the interaction between the system participants is regulated given that each party can understand the terms of the transaction differently.
A: This is a very important issue, and I would like to stress it is impossible to change or violate the terms of the transaction in the Bitbon System. The use of blockchain technology guarantees recording and storing all rights and obligations of each party to the transaction executed in the Bitbon System. A transaction (project) that does not meet the requirements set out in the Bitbon System public contract, as well as in the Bitbon public contract of a specific project, will not be admitted into the system.
I would like to emphasize that the Bitbon System is based on a fundamentally important document — the Bitbon System Public Contract, which consists of 55 clauses. In fact, it is a basic foundation agreement between Simcord Company and all Bitbon System participants. This agreement identifies tasks and objectives of the Bitbon System, determines and establishes the basis for its development, and stipulates a set of basic terms and conditions whose fulfillment is mandatory for all Bitbon System participants, including contributors.
Contributing is possible only within the framework of the Bitbon System. It is carried out under a certain scenario described in a special document — the public contract of each specific project, which is prepared by the Bitup-Agency for the contractat. The Bitbon public contract stipulates how Projectbons are issued, transferred, and backed, as well as how all participants can implement the project and how contributors can receive income from it. Blockchain technology will not allow the participants to modify the plan of actions agreed to implement the project. It is worth mentioning that the income received from contributing is designated in Bitbons, which participants can use at their sole discretion, including the exchange of Bitbon for traditional money.
In the context of your question, allow me to touch on the special role of a Bitup-Agency. This is a Bitbon System participant with the unique right to decide whether or not to admit the project to the IBO (Initial Business Offering, ed.). If the project is accepted, the Bitup-Agency supervises its implementation in the Bitbon System under the terms of the public contract of a specific project. In other words, the Bitup-Agency represents and protects the contributors’ interests.
Q: You advertise Bitbon as a backed financial instrument. How is it backed?
A: The fundamental feature of Bitbon, which we have used to lay down a solid foundation in terms of reliability and unlimited potential for application, is its full backing by a certain part of property rights to assets. This concept was realized precisely due to the mechanisms of automatic contributing of the Bitbon Capitalization Fund in the interests of all Bitbon System users as per Clause 27 of the Bitbon System Public Contract, which you can find on the official website. At the same time, assets can be of any value — from movable or immovable property up to intellectual property. Therefore, Bitbon has a real value, which is based on the value of various types of assets included in it and the prospects for their development.
Q: And yet, how does your financial instrument differ from any other digital currency implemented on blockchain?
A: Our development combines all the properties of a crypto asset, which, in turn, is based on the classic properties of cryptocurrency. All this is embodied in Bitbon, that is to say, a crypto value which is based on 17 properties that make up the integral system and allows determining the value of any property; it has a process organization function as it is a key component of the Bitbon System. Such a model makes it possible for all users to profitably and safely exercise their right to own and dispose of such a value, which is based on the potential for the development of global social significance in all spheres of public life.
Q: At the moment, there is a heated debate over cryptocurrency market regulation at the legislative level. Have you already resolved this tricky issue and if not, how do you intend to?
A: The subject of regulation is really relevant, but in our case everything is clear. Legislative regulation of Bitbon is carried out exclusively in the legal field of the state, where the taxpayer is the Bitbon System participant and which ensures the transparency of all processes and interactions among participants. Due to the embedded functioning principle, the asset owners and the Bitbon System participants have the opportunity to establish and control their legal relationships with the possibility of having in circulation only the right to acquire property rights to assets. This means the property itself remains under the ownership of its owner on the terms stipulated in the Bitbon public contract of each project.
Q: In conclusion, to sum it all up, Alexander, what is your long-term vision for Bitbon?
A: Simcord Company sets global goals, therefore, in a long-term perspective, I consider Bitbon as the optimal tool for management, evaluation, and measurement of the cost of any type of value that will strongly support the emergence of a common world database updated in real time and containing objective information on all assets and resources available to the global economy. This, in turn, will result in the creation of new methods of analysis based on accurate mathematical calculations of the rational use of all resources for the most effective management of society’s development.